According to calculations by the Euroconstruct research group, of which the ifo Institute is a member, the European construction industry has overcome the coronavirus slump. Euroconstruct assumes that the construction volume will grow by 3.6% this year. According to Euroconstruct, the construction volume had already grown by 5.6% in 2021, but fell by 4.7% in 2020.
With an increase of 7.1%, residential construction saw the strongest growth in 2021. Civil engineering also significantly exceeded pre-crisis levels in 2021. However, non-residential building construction is still struggling: already the hardest hit by the pandemic in 2020 with a decline of 7.3%, it also fell short of the pre-crisis level of 2019 in 2021.
The research group also points out that prices for construction services rose in many countries in 2021. In Germany, for example, the price increase amounted to 9.1 percent, in Hungary and Italy over 10 percent each. According to Euroconstruct, global supply bottlenecks for building materials and preliminary products play a significant role in the price increase.
Source and further information: ifo.de
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